CRM Using Data Warehousing at First American Corporation Case Study

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CRM Using Data Warehousing at First American Corporation

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TOPIC: Case Study on CRM Using Data Warehousing at First American Corporation Assignment

The transformation of First American Corporation (FAC) from a $60M loss in 1990 to $211M in 1998 can be attributed to the greater levels of effort and high priority placed on putting the customer and their needs at the center of the business. The many investments in Customer Relationship Management (CRM) systems, analytics platforms, integration of marketing, sales and financial reporting systems which combined to form the VISION data warehouse are pivotal to the ongoing efforts at attaining profitability and performance. As FAC has been able to achieve significant results using the Tailored Client Solutions (TCS) strategy, the most critical success factors of this framework can all be attributed to how they unified customer experiences across all segments First American serves. The initial results have been impressive, yet there is much more work that needs to be done in order to gain even greater profitability and customer loyalty. The intent of this assessment is to illustrate how FAC can continually gain greater market share while increasing customer loyalty and profitability in the process. The formidable investment in analytics, BI and CRM systems is paying off, yet there are additional initiatives FAC can take to further grow beyond its current constraints and become a dominant force in the industry. The Tailored Client Solutions (TCS) strategy that includes client information, flexible product lines that can be customized to customers' specific needs, support for distribution management, and consistent service are also proving to be a scalable, highly effective platform for serving the three dominant customers as well. What needs to be included is more of a focus on how to transform these customer experiences into a foundation of ongoing trust. With the series of insights and recommendations gained from this analysis, FAC will be able to become a trusted advisor to its most valuable clients while also using the pervasive analytical platform to better understand their needs, preferences, wants and requirements. It is the intent of this analysis to show FAC how best to accomplish greater customer loyalty, increase customer trust and understand customers to a greater depth and with greater insight than ever before. All of these efforts are unified by deliberately choosing to deliver a perfect customer experience to every customer on every interaction.

How CRM Can Transform First American Corporation

Prior to the development of the Tailored Client Solutions (TCS) strategy, FAC's direction was leading the company into a balkanized, fragmented strategy that would have eventually alienated their best customers and led to lower levels of customer satisfaction over the long-term. With the many analytics, Business Intelligence (BI), CRM, distribution management and integration software and IT infrastructure the company has made, results are improving because the necessary data now exists to unify strategies. One of the most critical best practices of any CRM strategy is to create a unified, 360 degree view of the customer (Chan, 2005). Certainly FAC has begun to see the benefits of their IT and process investment sin this direction. Troubling however are the many problems and issues that remain after these extensive projects. One of the most significant continues to be the lack of focus on change management in general, and the exceptional rate of turnover with a few departments experiencing 100% and many having between 25 to 30%. This is symptomatic of a deficient change management process that needs to be fixed. The lack of focus on change management programs in the context of a CRM system project can seriously reduce its overall effectiveness and lead to substantially lower levels of performance over the long-term (Fay, Zahay, 2005). Clearly change management programs are needed to better align expectations and experience of the direct and indirect users of the series of CRM systems. Change management must get more attention in the existing series of initiatives internally if the long-term success of the project is to be achieved.

FAC has also made significant strides in defining the metrics and Key Performance Indicators (KPIs) to understand the composition of each customer segment, gaining insights into lifetime customer value, the relative levels of profitability by distribution channel, and more precision in defining the unique value propositions for each customer segment as well. With such a wealth of customer data. There is significantly more the company can do however. Skilled in conjoint analysis and advanced forms of analytics, FAC can also quickly gain insights into how prospective customers trade off one financial institution for another (Stone, Mason, 2000). FAC also has no idea of the relative elasticity of their services relative to competitors much less substitutes in the market as well. These are considerations that need to be taken into account given the massive amount of data the company has. What is also concerning is the lack of planning around CRM innovations including smartphones, tablets including iPads and other devices. These are all critical aspects of the company's future direction that are not being monitored today. Further, the distribution management system, which is extremely adept at defining channel optimization as it is at sensing new revenue opportunities, must over time be modified to reflect the new, innovative approaches customers are relying on to gain greater access to information. Nothing stands still in a customer relationship, that is why constant vigilance to emerging trends is so critical (Dver, 2003). An aspect of this that FAC's management teams have not taken into account in the context of the case study is the role of social media platforms and their highly disruptive potential effects on customer loyalty and overall CRM strategy performance. The onslaught of social media has created an even playing field with the customers being in charge, and companies needed to drastically redefine their strategies and unique value propositions to stay in step (Bernoff, Li, 2008). Web 2.0 technologies and their effects on organizations due to the increased voice of customers is predicated on a more egalitarian mindset of how channels are used in business, especially the social ones (O'Reilly, 2006). These changes taken together are going to be the catalysts of completely re-wiring the processes and performance approaches all companies rely on, with specific focus on core processes through business process management (BPM) and business process re-engineering (BPR) to unify diverse company segments to a common goal (Power, 2009). It is this aspect of unifying the company's overall architecture and structure to a common goal that is changing its culture for the better, making it more customer-centric. The next section of this analysis discusses how critical the need is for system and interprocess integration to ensure the internal culture at FAC continues to stay customer-centric and driven toward a unified view of the customer (Chan, 2005). One of the most critical take-aways from our monitoring of the social media impacts on the banking and finance industries is the inevitable shift in channels that customers rely on to gain useful insights and intelligence (Bernoff, Li, 2008). By continually scanning these areas of nascent and emerging trends, it's possible to gain a competitive advantage quickly, integrating these core concepts into the overall design of next-generation CRM systems as well. The study of the integration of social media and CRM, or Social CRM, is predicated on getting a very clear sense of the voice of the customer and engraining it into the overall strategic focus of an enterprise (Bernoff, Li, 2008). In order to set the stage for future growth, FAC will need to begin investing in these emerging technologies now while also planning for their integrating into the significant dare warehousing investments including the VISION platform.

Integrating Data Warehousing Into CRM Strategies

In assessing the data warehousing platforms and initiatives in place throughout FAC, it is apparent that the internal culture is now beginning to change given the pervasive availability of much higher-quality information and intelligence. The signs of this occurring include the shift from just concentrating on top revenue producers to looking at how to integrate actual transaction and product data into profitability assessment, which was accomplished in Phase 3 of the VISION project. The ultimate goal of being able to incorporate profitability assessment and analysis into key business processes in Phase 5 will require significant business process management and re-engineering.

Integration expertise in the form of process management and re-engineering can be invaluable in shaping the future direction of FAC from a pure efficiency standpoint as well (Power, 2009). The current intensive level of activity occurring within the company using advanced Extract, Transfer & Load (ETL) technologies and procedures could be significantly automated, streamlining overall VISION performance while also creating a more agile TCS platform for future growth. Greater levels of integration will also ensure greater accuracy of financial reporting by the functional, divisional and eventually in Phase 5, business process level. All of these elements of the CRM implementation at TAC need to be more fully engrained into the VISION phases of understanding revenue position; creating and executing a product and financial data input strategy… [END OF PREVIEW] . . . READ MORE

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CRM Using Data Warehousing at First American Corporation.  (2012, April 25).  Retrieved July 31, 2021, from

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"CRM Using Data Warehousing at First American Corporation."  April 25, 2012.  Accessed July 31, 2021.